Shareholder Information - The Company had 8,220,344 shares of common stock issued and outstanding as of October 31, 2024, with employees and Board members owning at least 36.9% of these shares[43]. - As of December 12, 2024, OCC had 8,220,344 common shares outstanding, indicating a stable equity structure[80]. Production Capacity and Facilities - The Company operated at approximately 40% to 50% of its production equipment capacity on average during fiscal year 2024[50]. - The Roanoke facility, which houses corporate headquarters and manufacturing operations, is situated on approximately 23 acres, with a building size of about 146,000 square feet[48]. - The Company leases a warehouse facility in Roanoke, Virginia, with a space of approximately 36,000 square feet for storing raw materials[49]. - The Company has a facility in Asheville, North Carolina, which includes two buildings totaling approximately 64,000 square feet, with one building currently not in use due to water damage[55]. - The company primarily manufactures its fiber optic cables in Roanoke, Virginia, and its enterprise connectivity products near Asheville, North Carolina[88]. Cybersecurity Measures - The Company continues to invest in cybersecurity measures, including real-time threat detection and multi-factor authentication for remote users[39][40]. - The Company is not aware of any existing cybersecurity threats that would materially affect its business strategy or financial conditions[47]. Financial Reporting and Internal Controls - The company identified a material weakness in internal control over financial reporting related to the classification of its Revolver balance as a noncurrent liability instead of a current liability as of October 31, 2023[128]. - The company has restated its financial statements for the year ended October 31, 2023, and for the quarters ended January 31, 2024, April 30, 2024, and July 31, 2024, due to the misclassification of the Revolver balance[123]. - The restatement does not impact total assets, total liabilities, or total shareholders' equity, nor does it affect previously reported consolidated statements of operations, shareholders' equity, or cash flows[123]. - The company plans to improve internal control processes regarding asset and liability classification, including developing a checklist for review at the end of each reporting period[122]. - There were no changes in the company's internal controls over financial reporting during the fourth quarter that materially affected internal control[124]. - The company will focus on reviewing and interpreting relevant literature for significant new agreements or transactions that may impact balance sheet classifications[124]. - The remediation plan for internal control improvements will take time, and there is no assurance that these initiatives will have the intended effects[122]. - The adjustments made in the restatement are non-cash, balance sheet only adjustments[123]. - The company's borrowing arrangements do not include financial covenants that would be impacted by the classification of the Revolver balance[123]. - The company plans to document both internal and external consultations related to asset and liability classification issues[122]. Product Offerings and Market Presence - OCC offers a diverse range of fiber optic and copper data communication products, including hybrid cabling and specialty connectors, designed for enterprise and harsh environments[85]. - OCC's products are sold in approximately 50 countries, showcasing a broad international market presence[112]. - The company has been granted 16 patents for innovative designs in fiber optic and copper connectivity over the past five years, highlighting its commitment to innovation[105]. - OCC's manufacturing facilities are ISO 9001:2015 registered, ensuring high-quality production standards[88]. - OCC's fiber optic cables are suitable for various applications, including military, industrial, and renewable energy sectors, demonstrating versatility[106]. - OCC's copper connectivity products comply with Category 5e, Category 6, and Category 6A standards, ensuring compatibility with high-speed data applications[96]. - OCC is recognized for its role in establishing copper connectivity data communication standards, reflecting its industry leadership[95]. Management and Governance - Neil D. Wilkin, Jr. serves as the Chairman of the Board, President, and Chief Executive Officer[153]. - The Optical Cable Corporation's Compensation Recovery Policy is effective from November 30, 2023[151]. - The report was signed by the Senior Vice President and Chief Financial Officer, indicating management's accountability for the financial information presented[162]. - The Chairman of the Board and CEO also signed the report, reflecting leadership's commitment to transparency and governance[165]. Compliance and Reporting - The company is in compliance with the Securities Exchange Act of 1934, ensuring regulatory adherence[161]. - The company reported consolidated financial statements for the year ended October 31, 2024, including balance sheets and cash flow statements[159]. - The annual report includes a comparison of consolidated statements of operations for the years ended October 31, 2024, and 2023[159]. - The company has filed its annual report in iXBRL format, ensuring compliance with modern reporting standards[159]. - The financial data includes detailed notes to the consolidated financial statements, providing insights into the company's financial health[159]. - The report highlights the company's strategic direction and performance metrics for stakeholders[159]. - The financial statements are crucial for assessing the company's operational efficiency and market position[159]. - The filing date of December 23, 2024, marks the timely submission of the annual report, aligning with regulatory deadlines[163]. Labor Challenges - The company has experienced challenges in hiring skilled labor due to macroeconomic trends, impacting its manufacturing capabilities[120].
Optical Cable (OCC) - 2024 Q4 - Annual Report